Correlation Between Criteo Sa and Clear Channel
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Clear Channel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Criteo Sa and Clear Channel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Clear Channel Outdoor, you can compare the effects of market volatilities on Criteo Sa and Clear Channel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Criteo Sa with a short position of Clear Channel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Clear Channel.
Diversification Opportunities for Criteo Sa and Clear Channel
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Criteo and Clear is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Clear Channel Outdoor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Channel Outdoor and Criteo Sa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Criteo Sa are associated (or correlated) with Clear Channel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Channel Outdoor has no effect on the direction of Criteo Sa i.e., Criteo Sa and Clear Channel go up and down completely randomly.
Pair Corralation between Criteo Sa and Clear Channel
Given the investment horizon of 90 days Criteo Sa is expected to under-perform the Clear Channel. But the stock apears to be less risky and, when comparing its historical volatility, Criteo Sa is 1.2 times less risky than Clear Channel. The stock trades about -0.05 of its potential returns per unit of risk. The Clear Channel Outdoor is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Clear Channel Outdoor on November 1, 2024 and sell it today you would earn a total of 3.00 from holding Clear Channel Outdoor or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. Clear Channel Outdoor
Performance |
| Timeline |
| Criteo Sa |
| Clear Channel Outdoor |
Criteo Sa and Clear Channel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Clear Channel
The main advantage of trading using opposite Criteo Sa and Clear Channel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Clear Channel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Clear Channel will offset losses from the drop in Clear Channel's long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
| Clear Channel vs. Criteo Sa | Clear Channel vs. Deluxe | Clear Channel vs. Emerald Expositions Events | Clear Channel vs. Marchex |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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